How to Value a House for Probate Purposes

Short answer, the house has to be valued as of the date of death, not today, and not with an online estimate. Maryland's Register of Wills requires a fair appraisal at gross market value, with no qualifying language, from an appraiser who has no financial interest in the estate's outcome.

Why the Date Matters

Whatever the house was worth on the date the person died is the number that matters for probate, regardless of what the market has done since. This value gets used for the estate inventory, filed with the Register of Wills, and it is also what determines the stepped-up cost basis heirs get for capital gains purposes if the house is later sold.

For larger estates that could trigger federal estate tax, there is an alternate valuation date option, six months after death, but that applies to the entire estate, not just the house, and it is worth discussing with the estate's attorney or accountant rather than assuming it applies.

What Actually Gets Submitted

A formal appraisal from a licensed, disinterested appraiser, meeting USPAP standards. The inventory listing this value is generally due within three months of the Personal Representative's appointment. Photographs and documentation supporting the appraised value where available.

Where People Try to Cut Corners

Online home value estimates, Zestimate-style tools, are not accepted for this purpose. Neither is a friend's guess or an old tax assessment. Maryland law is specific that the value has to be fairly stated without qualifying language, meaning "approximately" or "around" does not satisfy the requirement.

The other mistake is treating the probate appraisal and a real estate agent's market valuation as the same thing. They are related but not identical. The appraisal satisfies the court's requirement. A market valuation from an experienced agent tells you what the house will actually sell for today, which is what you need to make a real decision about repairs, pricing, and strategy.

What This Means Practically

You will likely need both: a formal date-of-death appraisal for the court filing, and a current market opinion to plan the actual sale. Get multiple offers on the property within minutes to see where the house stands in today's market once the formal appraisal is handled.

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